Tax relief may be available for student loan debtors, but only if they meet income requirements.
Individuals with qualified student loans can deduct on their federal income tax return up to $2,500 of interest annually if their modified adjusted gross income is $75,000 or less ($155,000 for married couples filing jointly). If they earn more, the deduction gradually phases out at $90,000 ($185,000 for married filing jointly).
Eligible loans are incurred to pay qualified education expenses. If debtors pay more than $600 in student loan interest in a calendar year, they should receive from their lenders Form 1098-E reporting the amount of interest.
Contact one of our experts with questions about possible tax relief.